Colliers International has just released their latest New Zealand Industrial Market Indicators report.
Our investor confidence survey started showing negative sentiment among industrial investors in mid-2007. At that time confidence in the office market was distinctly upbeat. Now, as confidence levels recover and threaten to tip back into positive territory, it is industrial sentiment that leads the way with office lagging. This follows the familiar theme we have mentioned before that, after residential, industrial tends to be the first property sector to recover after a downturn.
This year we have also seen positive returns recorded in the Property Council of New Zealand/Investment Property Databank (PCNZ/ IPD) investment performance for industrial property, while retail and office lag behind.
Economic data is reasonably positive too, with GDP growing and unemployment, maybe, passed its peak. The BNZ Capital performance of manufacturing index released in mid-May showed expanding manufacturing output for April for the third month in a row.
However, it would be misleading not to point out basic market metrics are still generally negative. Out there in the real world, businesses are still struggling. The question is how long it will take for that smattering of positive signs to translate into real expansion of the market, and with it some absorption of the large number of vacant buildings.
Click here to read the full report in PDF format
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Sales,
Office Leasing,
Industrial,
Character Space,
Valuation and Advisory Services,
Corporate Solutions,
Research & Consultancy,
Auckland Office,
North Shore Office,
South Auckland Office,
Wellington Office,
Christchurch Brokerage,
Wellington Valuation and Advisory Services,
Christchurch Valuation and Advisory Services,
Dhilan Balia,
Alan McMahon